Residential Building In Australia Remains Strong Despite Slowing

The number of new homes being built across Australia has seen a small decline as of November 2013, according to the latest figures, but the rise in homes being built remains strong. The Housing Industry Association (HIA) said that the number of homes being approved for building starts throughout the month witnessed a 1.5 per cent drop as a whole, but that certain types of property have still seen increases.

The number of detached homes being constructed across the country rose by 5.7 per cent in November when compared to the month prior, while the volume of multi-unit constructions being approved decreased by some 8.8 per cent in the same timescale. This shows the discrepancy in different types of home, which can largely be deduced to be based on the fact some properties are in far higher demand than others.

“Overall, the level of building approvals is high and the latest update indicates that activity in the market continues along a rising trend. Detached house approvals are at their highest level since during the stimulus in the middle of 2010,” said HIA senior economist Shane Garrett. “Total dwelling approvals totalled almost 174,000 over the past 12 months, a level of building which is much more consistent with Australia’s longer term housing needs,” he added.

As well as there being discrepancies in the types of property being built, the HIA also said that geographical differences showed that some states were performing far better than others when it comes to the building of new dwellings. In South Australia, for example, new building approvals have risen by some 23.2 per cent on an annual basis, whereas New South Wales saw the number of green-lit projects rising by 14.5 per cent. Tasmania and Victoria recorded the largest falls, with declines of 10.4 per cent and 17.4 per cent respectively.

Mr Garrett concluded: “It is vital that strong levels of home building continue so as to ensure that housing needs are met across all regions. This is all the more important in the context of the chronic housing under build over the past decade.”